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. they seem desperate to do that. plenty of liberals say, go over the cliff. big cuts in the pentagon and big tax hikes. the white house, from all indications that i've seen, they don't want that to happen. they are scared of what could happen to the markets. >> why aren't they dalg dealing with boehner? dana, be go ahead. jumpb in here. >> i think they won their negotiating power once boehner last week failed. as dana pushed out, the only thing that can get boehner is to do something. >> reporter: i think that you're right when i said that democrats don't think that the president will have much political damage. that does seem to be coming more from democrats here in congress than in the white house. democrats here in congress feel that it's a win-win for them politically. the one thing i will tell you very quickly, the pushback on this narrative that i heard from senate republican leader in the hallway. he said, do you remember who the speaker was during the hoover administration? i said, no. he said, that's my point. nobody will remember who the speaker was if ge into a recession but it's
of the policy moves in the direction of the democrats, right? tax rates go up. big spending cuts at the pentagon. and all the polls show that the republicans are going to be blamed for all of this. so obama -- as the one guy in this town that wants a deal more than anyone. on the other hand, he's probably the guy that purely political benefits the most after january 3rd satisfy in a stronger negotiating position. he'll also have, remember, a few more democrats in the house and in the senate. so the white house will be strengthened after this happens. but a lot of people in the white house and treasury department don't want that to happen because they think the markets may freak out. already the markets are reacting to the news within the last hour. yesterday the markets dipped a little bit on reid's comments in the senate. so they are worried about the economy. i think purely politically, obama will be strengthened once we go over. >> ryan lizza, thank very much. it's going to be an interesting couple of days. >> yeah, it sure is. >> thanks, ryan. >>> weapons of war on the streets of los angeles
coalition troops, contractors have been killed in these incidents. >> barbara starr at the pentagon, thank you for that. >>> lisa sylvester is monitoring some of the other top stories in "the situation room." >> well, egypt's new upper house of parliament convened today. they will have legislative powers until a lower house is elected. signed in to what you, the controversial charter was approved in two weekend rounds of voting but turnout was just 32%. critics say the constitution excludes minority rights. >>> and the recovery in the housing mar are ket remains on pace. home prices up 4.3% in october over last year. that is the biggest percentage increase and n. more than two years. near record low mortgage rates and fewer foreclosures are pepping spur saleses which is boosting prices. >>> and the world's longest high speed rail line is up and running in china. the 1428 mile line spans more than half of the country linking the capital of beijing to the southern chinese boom city. trains will run at 186 miles an hour on average and china aims to have more than 74,000 miles of high speed ra
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